Do these words sound confusing to you? Do you know the difference between the two and how they can help with your business?
What is CRM?
CRM stands for customer relationship management.
Without CRM, it will be almost impossible for you to get to know your customers.
Sure, you may recognise them as a familiar face. But employing a CRM tool or software can help you get to know your customers on a deeper level.
CRM analyses your customer interactions with your business throughout the entire customer lifestyle.
This is done by collecting and churning data.
With that data, you are also to build better experiences for your customers.
What is CXM?
CXM is customer experience management.
CXM can be defined at the practice of managing customer interactions at every point of their journey in order to deliver the best experience for them.
This will lead to higher customer satisfaction, help to foster brand loyalty, and increase revenue for your business.
Essentially, both CRM and CXM are meant to deal with how customers interact with your business. But they are both different and equally important for your business.
Here’s another definition of CRM by Qualtrics:
CRM is concerned with keeping track of customer experiences, reacting to issues and providing relevant marketing or services based on past behaviour.
CXM is a strategic goal of your entire business, namely to give customers consistently positive experiences that will drive loyalty and ultimately boost your business.Qualtrics
So how are the two connected?
To put it in the simplest way, you can’t help your customers if you don’t know them. Your business direction may be fuzzy.
With all the available data from CRM, you will be able to craft a better experience for your customers.
You can use the statistics and observations to come up with predictions and be proactive to your customers’ needs.
You will have a clearer picture of your customers habits – which means you will be able to craft a personalised experience for them.
You will be able to address issues that need to be resolved.
When you solve those issues, you are providing a better experience for your customers – which will leave them feeling satisfied.
Here’s an infographic to give you a clearer picture: